There is no getting around the significant rise in mortgage interest rates of late, with yesterday's 30-year average fixed-rate at 6.87%. As a result, many potential sellers and buyers are on the sidelines because of this one metric. However, it would be a mistake to assume the market is slowing. While it is possible that a slowdown will occur, over the previous week, a whopping eighty-five single-family homes were placed under contract in Deschutes County, up from last week's fifty-one. The pending sales were the highest since September 7, 2022, and I checked my inputs twice to ensure it wasn't an error.
The inventory of actively listed homes dropped to 514 from last week's 522, a sign that new listings are keeping pace with sales. In addition, the pending home sales days on the market declined from last week's recent low to eight median days on the market. The last time the days on the market were this low was June 15, 2022. These are impressively solid numbers for this week. Of course, one week does not make a trend, but all early indications for the first several weeks of 2023 have shown strong buyer demand. The median sale price was 637k, with the median price of actively listed homes at 700k. The median price reduction for pending sales was -5.41%, and the sold reduction was -6.48%. The decline in days listed for pending sales shows that sellers have found the correct pricing for today's market to entice buyers to take action.
Nearly every day, I talk to buyers waiting for market conditions to change, and if you are on a long time horizon and not prepared to buy today, I understand sitting back. However, the Case-Schiller Home Price Index shows that waiting has not worked. Demographics in Central Oregon are shifting, and the volume of qualified buyers engaging the market keeps prices firm. Although, many sellers are willing to come down on price somewhat to make a deal. Unfortunately for buyers squeezed on affordability, the price decreases are modest.
I've speculated that mortgage interest rates would be in the high 5% range for peak summer, but after the recent rate spike, I may have missed that call. With signs of strength in the economy and entrenched inflation, expect more Fed rate increases over the first half of 2022. Although, for the steady flow of people relocating to Central Oregon, market conditions matter very little. I likely sound like a broken record, but taking action on a home that fits your needs and budget is wise if buying a home in Central Oregon is in your plans.
What happens after the sale significantly impacts whether listing makes sense for sellers. Even a move within Central Oregon is worth considering with today's strong buyer demand. If moving out of the area is your goal, listing today puts you in a great position to maximize your price. Please use the tools on my website to learn about the market, and call me when you need my educated opinion. My data and research are unparalleled, and I look forward to helping however possible.